Comparing Nextdoor (NXDR) & Its Peers

Nextdoor (NYSE:NXDR) is one of 48 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it contrast to its competitors? We will compare Nextdoor to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Institutional and Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 56.4% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 33.4% of Nextdoor shares are held by insiders. Comparatively, 16.4% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Nextdoor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-21.04%	-11.48%	-10.11%
Nextdoor Competitors	-63.65%	-919.53%	-68.53%

Risk and Volatility

Nextdoor has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Nextdoor’s competitors have a beta of 0.54, meaning that their average stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Nextdoor and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	99	204	221	14	2.28

Nextdoor currently has a consensus price target of $2.10, indicating a potential upside of 25.37%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 136.35%. Given Nextdoor’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Nextdoor and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$253.40 million	-$54.20 million	-11.96
Nextdoor Competitors	$248.23 million	-$80.63 million	-10.50

Nextdoor has higher revenue and earnings than its competitors. Nextdoor is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Nextdoor beats its competitors on 7 of the 13 factors compared.

Nextdoor Company Profile

Nextdoor Holdings, Inc. operates as the neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. It enables small and mid-sized businesses, large brands, public agencies, and nonprofits to receive information, give and get help, and build connections. The company is headquartered in San Francisco, California.